The Hotel Operating Statement Financial Accounting Issues
Interpreting and Auditing Hotel Accounts in 2016 - Part 6 The Hotel Operating Statement
Financial Accounting Issues
The USALI is principally a management accounting structure. This means that allocations of revenues and costs may not accord with relevant financial reporting standards or those necessary for taxation computations.
Here are some of the areas where issues can arise:
The latest edition of the USALI introduced the distinction between Operating and Non-Operating revenues. This was to separate out income not generated by the operator or manager, such as interest, retail space or other rentals not associated with the hotel operation. The total of these forms a credit under the section of the Summary Operating Statement titles Non-Operating Income and Expenses.
The overall Total Revenue for a hotel may therefore require adding both of these lines together.